To:
Allianz Agents
From:
Allianz Corporate Communications
Subject:
Mooney Class Action Notice
Date:
November 25, 2008
The purpose of this letter is to inform
you of a class action notice that will be mailed soon to a large number of
Allianz Life Insurance Company of North America (Allianz) annuity owners
pursuant to a court order. “Mooney” is a lawsuit filed against Allianz in
federal court in Minneapolis, Minnesota in 2006 and certified as a class
action in May of 2007. The Mooney class consists of all persons, regardless
of age, who purchased one of seven deferred bonus annuity products between
February 9, 2000 and May 12, 2007. The products included in the class are:
Accumulator Bonus Maxxx® Annuity,
Accumulator Bonus Maxxx Elite®
Annuity, BonusDex® Annuity, BonusDex Elite®
Annuity, 10% Bonus PowerDex Elite®
Annuity, MasterDex 10® Annuity, and
InfiniDex 10TM Annuity. The Complaint in Mooney
alleges that Allianz (and its agents), through the consumer brochures and
Statements of Understanding, misrepresented the bonus feature of these
annuities as providing an “immediate” and “up-front” bonus, when annuity
owners had to defer and annuitize over 15 years to receive the full value
of the bonus. Plaintiffs also contend that Allianz inappropriately failed
to disclose certain factors it used to calculate the amount of payments
that it would make to owners of these annuities if they elected to
annuitize.
Although the Court certified the
class, class action certification is a procedural step and is not a
ruling on the merits of the claims against Allianz. Pursuant to the
Court’s order, notice of the class action is scheduled to be mailed to all
eligible class members no later than December 1, 2008. This notice will be
the first time that class members have been notified about the existence of
this lawsuit, and of the fact that they may be members of this class. The
notice will provide all class members the opportunity to exclude themselves
from the lawsuit, if they desire to do so.
The notice may generate inquiries
from your clients. As this relates to pending litigation, at this point we
are very limited in the information that we can provide to you or to policy
owners regarding the litigation. Accordingly, if you receive a
communication from such a client regarding the lawsuit or Notice, you
should respond only as
follows:
- You should not comment on the merits of the
lawsuit.
- You should not advise the client as to
whether they should (or should not) exclude themselves or opt out of
the lawsuit.
- The Court has ruled that the lawsuit can go forward
on a class basis, but this ruling has nothing to do with the merits of
the claims.
- Class action certification is one procedural step
in a lengthy legal process.
- Allianz strongly refutes these allegations. The
company stands behind its assertion that its deferred fixed annuities
are valuable products offering guarantees that responsibly address the
unique financial needs of people such as your clients.
- Allianz believes this lawsuit constitutes a great
disservice by fueling misperceptions and factual inaccuracies about
deferred fixed annuities. The company is vigorously defending itself
and is calling upon a number of experts to demonstrate the value of
its products. Allianz expects to be fully vindicated.
- If the client indicates that he or she is or was
represented by counsel, you should advise the client to consult
his/her counsel about the notice.
If the client is insistent on getting
more information regarding the lawsuit, refer them to the class action
notice and information contained in the notice. (Note: The contact
information contained in the notice is not an Allianz-sponsored contact.
The contact information is staffed by Plaintiffs’ counsel or their
representatives.)
The court order does not prohibit
Allianz from conducting ordinary business with respect to policy owners.
Service requests, such as requests to annuitize; change an address; change
of beneficiary; change of ownership; billing changes; death claims, etc.
can and should be serviced as normal. In other words, inquiries from class
members that do not relate to this lawsuit can be handled as you normally
would.
If you have any additional questions,
please contact the FASTeam at 800.950.7372 (press “1” for Sales Support).
If you receive any media calls
(trade publications, local newspapers, TV) regarding the class action
lawsuit, please refer the caller to Allianz Corporate Communications:
Jasmine Jirele 763.765.6087 (ext.36087), or Eryka Jackson 763.765.5415
(ext.45415). (Note: These contacts are for media inquiries only and will
not be able to provide any additional information regarding the litigation
or the notice.)
